Annual Tax on Enveloped Dwellings (ATED) is an annual tax charge, payable mainly by companies that own UK residential property valued at £500,000 or above. If your company owns such a property, then you could be subject to ATED.

Filing Deadline

ATED Returns (and tax if applicable) are always due at the beginning of the tax year to which they relate. For the 2025/26 tax year, ATED Returns must be submitted, and any tax liability paid, by 30 April 2025. There are penalties for late submission, and payment follows the rules for self-assessment.

What if I purchase a property during the tax year?

As both the Return and tax charge are due at the beginning of the tax year, if you purchase a property after 1 April 2025 that falls under the scope of ATED, then you need to declare this. HMRC stipulates a 30-day deadline from the acquisition date for submission of the ATED Return and payment of any ATED charges due.

For new build properties, ATED returns, and tax are due within 90 days of the earliest of the first occupation or first becoming a dwelling for Council Tax purposes.

If this affects you at any stage throughout the year, please get in touch if you would like our assistance with this.

Property within the Charge

A property will be a dwelling if all or part of it is used (or could be used) as a residence, such as a house or flat including gardens, grounds, and buildings within them.

Some properties are not classed as dwellings, including hotels, guest houses, boarding schools, etc., and therefore no disclosure is required.

To fall within ATED for 2025/26, an individual property must have been valued at over £500,000 on 1 April 2022 or at acquisition if later.

If a property is chargeable and no reliefs are available, a return needs to be made by 30 April 2025. The ATED charge will also be due and payable by this date.

The amount you'll need to pay is worked out using a banding system based on the value of your property:

Chargeable amounts for 1 April 2025 to 31 March 2026

Property value Annual charge

• More than £500,000 up to £1 million £4,450
• More than £1 million up to £2 million £9,150
• More than £2 million up to £5 million £31,050
• More than £5 million up to £10 million £72,700
• More than £10 million up to £20 million £145,950
• More than £20 million £292,350

Reliefs

Various reliefs can be claimed, including:

• Let to a third party on a commercial basis and is not, at any time, occupied (or available for occupation) by anyone connected with the owner.
• Open to the public for at least 28 days a year.
• Being developed for resale by a property developer.
• Owned by a property trader as the stock of the business for the sole purpose of resale.
• Being used by a trading business to provide living accommodation to certain qualifying employees.
• A farmhouse occupied by a farm worker or a former long-serving farm worker.
• Owned by a registered provider of social housing.

If reliefs apply and no tax is due, a Relief Declaration Return must still be submitted by 30 April 2025, and HMRC will charge penalties for late filing if the deadline is missed.

Get in touch with us

If you believe that you may need to complete an ATED declaration, please get in touch with your usual Jerroms contact urgently. Due to 30 April 2025 filing deadline, we will need to commence any work required immediately.